Total capitulation? Art of the Deal? There are actually some very interesting global dynamics at play and lessons to learn. First, to summarize, Trump announced a ‘Phase 1’ of trade deal with China. Moreover, to the dismay of many of his supporters who are virulently anti-China, he said the following: “There was a lot of friction between the US and China. Now it’s a love fest! That’s a good thing.”
Why Trump made the deal: As I have written numerous times over the last 1.5 years, the trade war with China was a futile effort. China is too strong, the US is too dependent on China, and it’s impossible to move any meaningful amount of manufacturing out of China.
Moreover, Trump is facing re-election and now, to make things worse, possible impeachment by Democrats. He needs a win. The best solution is to get a partial…
View original post 901 more words